Answer:
b) households will save more because they will expect higher taxes in the future
Explanation:
The Ricardian Equivalence proposition is one of the pillars of classical economics, which sadly has proven to not work very well in the real world. According to classical economists, and their quantity theory of money plus the Ricardian Equivalence, recessions do not exist because it is impossible for them to exist. But in the real world, that is not true. Recessions exist, e.g. the US is in a recession since the first quarter of 2020 (even before the current health crisis). When real people lose their jobs or are afraid to lose their jobs, their spending habits change.
On the other hand, when real people get a tax refund or tax cut, they generally spend it, they will not save it to pay future taxes. That is why car sales increase during February after checks form the IRS are handed out.
Theoretically, classical economics is great. The problem is that we are human beings, and as such, our behavior cannot be controlled or determined by what we should or should not do. This is exactly why the velocity of money (quantitative theory of money) is not constant.
The gross margin ratio is a percentage resulting from dividing the amount of a company's gross profit by the amount of its net sales. In this case it would be 118,350/466,300 = 25.38%
Sharon is in the "purchase decision and purchase act" <span>stage of consumer decision process.
</span><span>The buying decision process is the basic leadership process utilized by buyers with respect to advertise exchanges previously, during, and after the buy of a good or administration. It can be viewed as a specific type of a cost– advantage examination within the sight of various options.The five stages of this process includes:
Problem Identification
Information Search
Evaluation of Alternatives
Purchase Decision
Post-purchase Decisions</span>
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When you purchase an item in a store you may be charged by Sales tax. It is <span>a tax on sales or on the receipts from sales.</span>
